Canada needs to be part of the new NAFTA

Jacqueline Varas

AAF’s Jacqueline Varas explains why Canada must be part of the new NAFTA negotiations in an op-ed published by the Washington Examiner.

“The United States and Canada are under pressure to reach a deal to preserve a trilateral North American trade agreement. Although the new U.S.-Mexico trade agreement is flawed, the United States must do everything it can to maintain a trilateral trade deal.

Moving from the North American Free Trade Agreement, which promotes regional cooperation and economic integration, to a bilateral trade agreement with only Mexico that increases barriers to trade would be a mistake.

President Trump’s trade strategy has been to impose tariffs and renegotiate or withdraw from trade agreements in order to lower our trade deficit. This strategy is misguided on several fronts. First, a widening trade deficit is positively associated with economic growth, as imports are more valuable to consumers than exports.”